XML 81 R16.htm IDEA: XBRL DOCUMENT v2.4.0.8
Preferred Stock
12 Months Ended
Sep. 30, 2013
Equity [Abstract]  
Preferred Stock

 In Fiscal 2010, the Company sold and issued an aggregate of 3,490 preferred stock units (the “Series B Stock”) at a purchase price of $700 per preferred stock unit ("Preferred Stock Units"). Each share of Series B Stock is convertible at any time at the holder’s option into 2,000 shares of common stock at a conversion price per share of Common Stock equal to $0.50. During Fiscal 2010, Fiscal 2011, and Fiscal 2012, 2,564 shares of Preferred Stock Units were converted into approximately 5,127,000 shares of the Company’s Common Stock. During Fiscal 2013, approximately 60 shares of the Company’s Series B Stock were converted into 120,000 shares of the Company’s Common Stock. As a result of such conversions, approximately 866 shares of Series B Stock were outstanding at September 30, 2013, convertible into approximately 1,732,000 shares of the Company’s Common Stock.

 

 The Series B Stock is non-voting, except to the extent required by law. With respect to distributions upon a deemed dissolution, liquidation or winding-up of the Company, the Series B Stock ranks senior to the Common Stock. The liquidation preference per share of Series B Stock equals its stated value, $1,000 per share. The Series B Stock is not entitled to any preferential cash dividends; however, the Series B Stock is entitled to receive, pari passu with the Company’s Common Stock, such dividends on the Common Stock as may be declared from time to time by the Company’s Board of Directors.